For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once.

A - To provide information for economic decisions

B - To motivate managers and other employees

C - To measure income and assets for reports to external parties

D - To justify costs or compute reimbursement amounts

Required

1. To encourage simpler product design
2. To cost inventories for reporting on a company's tax return
3. To encourage the sales department to focus on high-margin products
4. To evaluate a make or buy decision
5. To cost inventories for the balance sheet
6. To decide whether to add or delete a product line
7. To decide on an appropriate selling price for a special-order product
8. To cost a product at a fair price for government contracts

Answer rating: 100% (QA)

A To provide information for economic decisions B To motivate managers and other employees C To ... View the full answer